Suppose That the Equations S = 2P and D =

question 15

Multiple Choice

Suppose that the equations S = 2P and D = 6 - P represent a small country's home supply and home demand curves. If the world price is $1, which of the following is the increase in the country's welfare when it trades compared with autarky?

• A) $6.00
• B) $4.50
• C) $1.50
• D) $0.50

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Definitions:

Tautology

A proposition that is inherently true due to its logical structure or necessity, frequently restating the same concept using varied terminology.

Main Component

The primary or most important part of something that contributes to its function or structure.

Conjunct

An element of a conjunction in logic, representing a compound statement formed with the word "and" that is true only when both components are true.

Conjunction

A compound statement formed by combining two statements with the word "and".